WE THANK Mr Luo Siao Ping for his feedback (“Extend COE validity to 20 years”; June 13).

The Certificate of Entitlement (COE) system ensures that our vehicle population does not exceed what our road infrastructure can support.

COEs are valid for 10 years. When a vehicle’s COE expires, the owner may choose to deregister the vehicle or renew the COE for another five or 10 years by paying the Prevailing Quota Premium.

Upon deregistration, the COE will be returned to the COE quota for all prospective owners to bid.

This way, an opportunity to redistribute a vehicle’s COE is created every 10 years, therefore giving prospective vehicle owners a chance of owning a car.

Helen Lim (Ms)
Director, Media Relations
Land Transport Authority

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